The UK is to become the subject of disciplinary proceedings from the European Commission as its budget deficit continues to grow.

The EC cannot fine the UK for breaching its financial rules as it is not a part of the Eurozone, however the proceedings are intended to serve as a warning to the UK to reduce its budget deficit.

Europe's Growth and Stability pact states the budget deficit of an EU state should not exceed three per cent of national GDP. The EC has said it believes the UK could exceed this limit.

The UK is the first country this year to be issued a warning, however both France and Germany have been given similar warnings in the past and threatened with fines.

Graham Mather, president of the European Policy Forum, said, At the moment it looks as though Gordon Brown is going to face an excruciating embarrassing period in which all these proceedings will be brought to bear on Britain, reports the BBC.

He continued, Our colleagues in other countries will be saying: 'Oh dear Gordon, what's gone wrong, why have you broken the rules, how can we help you get things back in line and get your budget deficit back under control'.

It's not going to be a happy picture.

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